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Australia: Xstrata Coal's Oaky Creek Coal becomes 'water wise'

Oaky Creek Coal mine and community have responded to the water scarcity by reducing raw water usage through 'water wise' management and water conservation measures.

Reduced water allocations

The Bowen Basin in Queensland, Australia is home to a rich coal mining industry, including Xstrata Coal's Oaky Creek mine. It is also an area where water is becoming increasingly scarce. Drought conditions over the past several years are causing regulators to reduce water allocations and water scarcity has become a key factor in the approval of any new mine and the expansion of existing ones.

The Oaky Creek mine shares a water source and water allocation with the nearby town of Tieri, a mining community of 2,000 Oaky Creek employees, family members and service providers. In 2005, the mine and town were forced to use a portion of the following year's allocation, reducing the amount of water available in 2006. In addition, water levels at the main water source, the Fairburn Dam, dropped to 12% of its capacity level in 2006, as a result of several consecutive years of drought.

Reduction of water usage

To tackle this material challenge to the operation, Oaky Creek set an aggressive target to reduce raw water use by 10%, or 305 million litres, from 2005 levels, to operate within the reduced 2006 water allocation and reduce costs associated with pumping raw water. Conservation efforts were underpinned by the 'water wise' campaign, which was extended beyond the mine to include the town, and was comprehensively marketed, involving a number of initiatives.

Water management

At the mine, these initiatives included water management meetings, supported by 'tool box' talks at the operational level. At the meetings, representatives from business areas across the operation review conservation strategies and monthly water statistics. Raw water use is monitored as a key performance indicator, reviewed by management on a monthly basis.

Initiatives implemented

Increased awareness amongst employees led to a number of initiatives being implemented. For instance, water from heavy vehicle washing is re-used to wash coal, rather than going to an evaporation pond. Solenoids (electromagnetic devices) were installed on some conveyor sprays to prevent them from running continuously. Other conveyors were converted from raw water to pit water. An operation-wide effort was made to improve leak detection and prevention and flow-meters were installed on equipment.

Community engagement

Community stakeholders were actively engaged in the town of Tieri and Xstrata Coal personnel erected a large sign promoting water conservation at the town entrance and distributed letterbox flyers to residents.

Green areas reviewed

A major review of the town's public green areas, ovals and parks was undertaken by Xstrata in partnership with Spotless and the town council, and watering times were reduced and re-scheduled to more efficient times of day. Rain delay sensors were installed on some sprinkler systems. Construction of the Water Wise Garden Trail also began in 2006, with the project aiming to remove more than 120 sprinklers.

Targets surpassed

In its first year, the water wise conservation effort has surpassed the 10% target, reducing raw water use by 13% (398 million litres) compared to 2005. Oaky Creek has set a further reduction target of 10% for 2007. Specific initiatives include approaching high water users in Tieri to analyze their water use and to reduce water consumption using a consultative approach.

Building on the success

At a divisional level, Xstrata Coal Queensland is examining ways to build on the success at Oaky Creek and Tieri and to reduce raw water use further across all sites including investigating implementing a 'Water Tight Town – Water Wise Workforce' programme. This initiative, run by The Sustainable Minerals Institute at the University of Queensland, is designed to improve town water management through reduced import of fresh water, large water re-use, effective systems of rainwater capture, reducing water loss caused by leaks and other activities. In addition, a risk-based study of water use has been undertaken and will be completed in the first quarter of 2007. This will allow each operation to evaluate water use more accurately and will inform a water management strategy for the entire business.